Netflix: US subscriber reaction to action against account sharing

Bangkok, Thailand - August 27, 2017 : Netflix app on Laptop screen. Netflix is an international leading subscription service for watching TV episodes and movies.

Following the introduction of an additional fee for account sharing at Netflix in the U.S., the company saw an increase in new subscriptions. According to data from market research firm Antenna, approximately 100,000 new Netflix subscriptions were signed up in each of the first two days following the introduction of the add-on memberships on May 25 and 26, 2023. However, it remains unclear whether these new subscriptions were primarily full Netflix subscriptions or the new Netflix sub-accounts.

Cancellation rate rises, but remains below new signups

Antenna also reports that the cancellation rate of existing Netflix subscriptions increased on those two days. Although the market researchers do not provide absolute numbers, they emphasize that the number of cancellations was lower than the number of new subscriptions. Netflix has not yet commented on Antenna’s figures.

Long-term impact still uncertain

Antenna’s data provides an initial glimpse of how subscribers are reacting to Netflix’s actions against account sharing. However, the long-term evolution of this situation remains unclear. In a survey by Golem.de, many users said they would cancel their Netflix subscription if an additional fee was introduced.

Spanish subscribers react with cancellations

In Spain, one of the first European countries to test Netflix’s account-sharing surcharge, about one million subscribers canceled their Netflix subscriptions, according to market researchers. Netflix has not yet released figures on this development.

Netflix Strives to Retain Existing Subscribers

Following the launch of add-on memberships in several countries, including Germany, Netflix is making efforts not to alienate existing subscribers. The company assures that subscribers need not fear cancellation of their subscription. In Germany, a Netflix add-on membership costs €4.99 per month. It should be noted, however, that these sub-accounts do not have the same range of functions as a full Netflix subscription.